When a buyer ‘waives the appraisal contingency,’ it means they’re agreeing to move forward with the purchase even if the home appraises for less than the contract price.

Normally, if a home appraises low, the buyer can renegotiate or walk away without losing their deposit. When you waive that protection, you’re telling the seller:

‘No matter what the appraised value comes in at, I’m still buying this house.’

If the appraisal comes in low, the buyer must cover the difference in cash or find another way to make up the gap.

Why do buyers do this?

To make their offer stronger in a competitive market. Sellers love appraisal waivers because it removes uncertainty and reduces the risk of the deal falling apart.

But it’s not a small decision.

Waiving the appraisal contingency increases ...